Buy-In Agent Eurex STS to Wind Down Services in June 2022

Deutsche Börse Group’s buy-in agent, Eurex Securities Transactions Services GmbH (Eurex STS), announced on Monday its decision to wind down its services, effective from 30 June 2022.

The drastic move came in response to the 'Refit' draft of the Central Securities Depository Regulation (CSDR) published last week by the European Commission. It primarily proposed the removal of mandatory buy-ins for not settled securities deliveries.

CSDR regulations oblige the buyer in a securities transaction to initiate a buy-in process against the seller if the settlement Settlement Settlement in finance refers to the process when a buyer makes payment and receives the agreed-upon services or goods. The term is used on exchanges such as New York Stock Exchange (NYSE) when security changes hands. When the asset is transferred and placed in the new buyer's name, it is considered settled. This process could take a few hours or several days after a trade is made. It depends on the clearance process. In the United States, the settlement date for marketable stocks is usually 2 Settlement in finance refers to the process when a buyer makes payment and receives the agreed-upon services or goods. The term is used on exchanges such as New York Stock Exchange (NYSE) when security changes hands. When the asset is transferred and placed in the new buyer's name, it is considered settled. This process could take a few hours or several days after a trade is made. It depends on the clearance process. In the United States, the settlement date for marketable stocks is usually 2 Read this Term of a transaction fails after a certain period.

The buy-in agents act as a third-party, enabling market participants to comply with the new regulation Regulation Like any other industry with a high net worth, the financial services industry is tightly regulated to help curb illicit behavior and manipulation. Each asset class has its own set of protocols put in place to combat their respective forms of abuse.In the foreign exchange space, regulation is assumed by authorities in multiple jurisdictions, though ultimately lacking a binding international order. Who are the Industry’s Leading Regulators?Regulators such as the UK’s Financial Conduct Authority ( Like any other industry with a high net worth, the financial services industry is tightly regulated to help curb illicit behavior and manipulation. Each asset class has its own set of protocols put in place to combat their respective forms of abuse.In the foreign exchange space, regulation is assumed by authorities in multiple jurisdictions, though ultimately lacking a binding international order. Who are the Industry’s Leading Regulators?Regulators such as the UK’s Financial Conduct Authority ( Read this Term, thus increasing the efficiency of securities settlements.

“Since its initial proposal in 2012, the CSDR and its Settlement Discipline Regime (SDR) provided for cash penalties in case a transaction fails to settle and a mandatory buy-in procedure as a final backstop. Originally planned for September 2020 and postponed several times, the SDR finally came into force in February 2022, albeit without the mandatory buy-in component,” the announcement stated.

“The decision by the European Commission to propose the removal of the buy-in obligation from the SDR for an indefinite time renders the business proposition of Eurex STS unviable.”

Offering Crucial Services

Eurex STS was founded by Deutsche Börse in 2019. Its purpose was to support the financial industry and the regulatory agenda with mandatory buy-in solutions and to address settlement failures, which are higher in the European Union compared to other jurisdictions.

Eurex STS obtained a banking license from the German Federal Financial Supervision Authority (BaFin) in early 2020, Finance Magnates then reported. It was termed a key milestone for the company.